This chapter discusses globalization's impact on states. There is no topic more controversial in the field of global political economy than the impact of globalization on the accountability, autonomy, capacity, and sovereignty of the nation state; and the controversy has only intensified since the onset of the global financial crisis. Arguably, the democratic character of governance in contemporary societies is at stake in such debates. The chapter reviews the extensive controversy that surrounds such questions, focusing attention on the principal mechanisms in and through which globalization is seen to impact upon the nation state and the empirical evidence that might either substantiate or question the existence of such mechanisms. It also provides a detailed assessment of the case for and against the globalization thesis, examining the extent to which global economic integration might be seen to restrict the parameters of domestic political autonomy. Moreover, the chapter differentiates between the politics of globalization and the globalization of politics. It concludes by considering the complex and sometimes paradoxical relationship between globalization, democracy, and the nation state.
Chapter
Neil Robinson and Owen Worth
The political economy of Europe has changed significantly in the last four decades because of globalization, the collapse of communism, and financial crises. This chapter first discusses the different varieties of capitalism that emerged in Europe after World War II. It looks at how they have been put under pressure by economic internationalization and the dominance of neoliberal ideas, which together have weakened economic management at nation-state level. The chapter also looks at the development of capitalism in Eastern Europe and explanations for variance in post-communist capitalist development. Finally, the chapter considers the challenges to the management of Europe’s political economy posed by the international financial crisis that dominated much of Europe’s politics after 2007, along with the initial response to the economic crisis caused by the coronavirus pandemic in 2020.
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This chapter examines the position of the European Union in the global political economy (GPE). It also considers key dimensions of change and development as well as the EU's impact on the operation of the contemporary GPE. To this end, the chapter discusses central ideas in international political economy and relates these to the growth of the EU. Furthermore, it analyses the EU's role in the GPE in three areas: European integration, the EU's engagement in the GPE, and the EU's claims to be a major economic power. It concludes with an assessment of global economic governance, focusing in particular on the EU's role in the financial, economic, and sovereign debt crises.
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This chapter examines the field of political economy from a historical, comparative, and international perspective, focusing on how ideas, practices, and institutions develop and interact over place and time. It first provides an overview of political economy as a field of study before discussing some important theories such as Marxism, liberalism, and economic nationalism. It then considers key issues such as the interaction of states and markets and the North–South divide, along with Karl Marx's critique of international political economy (IPE). It also explores the post-war international economic order and the twin phenomena of globalization and regionalization in the post-Cold War era before concluding with an analysis of the ‘boom and bust’ episodes in the global capitalist economy such as the global financial crisis of 2008.
Chapter
John Ravenhill
This chapter provides an overview of the current state of the world economy. The contemporary international economic system is more closely integrated than in any previous era. The global financial crisis and its aftermath provide a clear illustration of the relationship between trade, finance, international institutions, and the difficulties that governments face in coping with the problems generated by complex interdependence. The chapter then traces how the world economy evolved to reach its present state. Before 1945, the spectacular increase in economic integration that had occurred over the previous century was not accompanied by institutionalized governmental collaboration on economic matters. The end of the Second World War marked a significant disjunction: global economic institutions were created, the transnational corporation emerged as a major actor in international economic relations, and patterns of international trade began to change markedly from the traditional North–South exchange of manufactures for raw materials. Since the emergence of global political economy (GPE) as a major subfield of the study of international relations in the early 1970s, GPE scholars have generated an enormous literature that has employed a wide variety of theories and methods. Most introductions to the study of GPE have divided the theoretical approaches to the subject into three categories: liberalism, nationalism, and Marxism.
Chapter
Peter Gowan and Doug Stokes
This chapter examines some of the central debates on how we should understand the United States’ efforts to reshape international economic relations since the 1940s. It first considers debates on the sources and mechanisms of American economic strategy before turning to debates about the substance of American efforts to shape the global economy. It approaches the debates about the substance of U.S. foreign economic policy since 1945 by classifying varying perspectives on this question in three alternative images. The first such image is that of America as the promoter of a cooperative, multilateral order in international economics. The second image is that of an American economic nationalism and the third is that of an American empire. The chapter goes on to analyse the global financial crisis and concludes with an overview of some of the main current debates about the strength of American capitalism in the world economy.
Book
Edited by Michael Cox and Doug Stokes
U.S. Foreign Policy provides a comprehensive overview of the United States’s role in international politics. Chapters focus in turn on the historical background, institutions, regional relations, and contemporary issues that are key to the superpower’s foreign policy making. The second edition includes two new chapters on Barack Obama’s use of smart power and a debate on the nature of U.S. hegemony. All chapters have been updated with important developments including the effects of the global financial crisis, the on-going conflict in Afghanistan, and political uprisings in the Middle East.
Chapter
Louis W. Pauly
This chapter studies the globalization of finance. The world economy today reflects a systemic experiment involving, on the one hand, the unleashing of cross-border capital movements and, on the other, the dispersion of the political authority necessary to oversee and, when necessary, stabilize the markets through which vast amounts of capital now flow. Resulting tensions become most obvious during financial crises, when those flows suddenly stop or reverse their direction. In the late twentieth century, most such crises began in emerging-market or developing countries and had limited systemic consequences. In 2008, however, the global experiment capital market openness, now far along in its evolution, almost failed catastrophically when policy mistakes in the United States combined with large national payments' imbalances and a broad economic downturn to spawn a worldwide emergency. Shortly thereafter, Europeans at the core of the system narrowly escaped a similar disaster at the regional level. The chapter then explores key implications for contemporary global governance. It calls particular attention to the increasingly difficult and variegated politics of systemic risk assessment, emergency management, and future crisis prevention as the experiment continues.
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This chapter provides a broad overview of the international system between the end of the cold war— when many claimed that liberalism and the West had triumphed— through to the second decade of the twenty-first century, when the West itself and the liberal economic order it had hitherto promoted appeared to be coming under increased pressure from political forces at home and new challenges abroad. But before we turn to the present, the chapter will look at some of the key developments since 1989—including the Clinton presidency, the George W. Bush administration’s foreign policy following the attacks of 9/11, the 2008 financial crash, the crisis in Europe, the transitions taking place in the global South, the origins of the upheavals now reshaping the Middle East, the political shift from Barack Obama to Donald Trump, the emergence of Asia, and the rise of China. The chapter then concludes by examining two big questions: first, is power now shifting away from the West, and second, to what extent does the current wave of populism in the West threaten globalization and the liberal order?
Chapter
This chapter provides a broad overview of the international system between the end of the cold war—when many claimed that liberalism and the West had triumphed—through to the second decade of the twenty-first century, when the West itself and the liberal economic order it had hitherto promoted appeared to be coming under increased pressure from political forces at home and new challenges abroad. But before turning to the present, the chapter looks at some of the key developments since 1989—including the Clinton presidency, the George W. Bush administration's foreign policy following the attacks of 9/11, the 2008 financial crash, the crisis in Europe, the transitions taking place in the global South, the origins of the upheavals now reshaping the Middle East, the political shift from Barack Obama to Donald Trump, the emergence of Asia, and the rise of China. The chapter then concludes by examining two big questions: first, is power now shifting away from the West, and second, to what extent does the current wave of populism in the West threaten globalization and the liberal order?
